With changes in the Krona (reporting currency is US$), compared to using the current rate method, the NT under temporal method will most likely be: higher? lower? Year-end: $0.14 = 1 Krona Average: $0.132 = 1 Krona The subsidiary is running in Net monetary liabilities. My answer: The Krona is appreciating, so @ historical rate (suppose the E.R is $0.13 = 1 Krona) would make the depreciation under temporal lower, NI is higher The Schweser answer: Since the Krona is appreciating and the company is running net monetary libabilities, the remeasurement loss occurs, which makes NI is lower The Schweser answer seems fair for me. But am I wrong in my answer?